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State AGs Secure $515,000 Settlement for Data Breach

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Filed January 28th, 2026
Detected February 7th, 2026
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Summary

Massachusetts and Connecticut Attorneys General have secured a $515,000 settlement with Comstar, LLC, an ambulance billing vendor, following a 2022 data breach. The settlement addresses violations of data security regulations and HIPAA, requiring Comstar to pay $415,000 to Massachusetts and implement enhanced security measures.

What changed

Massachusetts and Connecticut Attorneys General announced a $515,000 settlement with Comstar, LLC, an ambulance billing vendor, for failing to adequately safeguard sensitive patient information during a March 2022 data breach. The breach potentially exposed the Social Security numbers, driver's license numbers, financial account information, and medical assessment data of approximately 326,426 Massachusetts residents and 22,829 Connecticut residents. The settlement, filed in Suffolk Superior Court, resolves allegations that Comstar violated Massachusetts data security regulations and HIPAA due to an inadequate Written Information Security Program (WISP).

As part of the settlement, Comstar will pay $415,000 to Massachusetts and an additional amount to Connecticut. The company is also mandated to implement significant security enhancements, including phishing protection software, a vulnerability management program, multi-factor authentication, an intrusion detection/prevention system, and a security incident and event management platform. Comstar must also conduct annual security assessments for three years and report the findings to both state Attorneys General. This action highlights the critical need for vendors handling sensitive patient data to maintain robust security programs and comply with data protection laws.

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Press Release

Press Release AG Campbell Secures $515,000 Settlement with Ambulance Billing Vendor for Failing to Safeguard Sensitive Patient Medical Information


For immediate release: 1/28/2026
- Office of the Attorney General


Media Contact

Kennedy Sims, Deputy Press Secretary

Phone

Call Kennedy Sims, Deputy Press Secretary at (617) 727-2543

Online

Email Kennedy Sims, Deputy Press Secretary at Kennedy.Sims@mass.gov


BOSTON — Massachusetts Attorney General Andrea Joy Campbell today announced that her office has reached a $515,000 settlement with Comstar, LLC, a Rowley-based ambulance billing vendor, for failing to safeguard sensitive patient information during a March 2022 data breach that potentially affected the Social Security numbers, driver’s license numbers, financial account numbers, and medical assessment information of approximately 326,426 Massachusetts residents and 22,829 Connecticut residents. The settlement was reached in partnership with the Connecticut Attorney General’s Office, and Massachusetts shall receive $415,000 from the resolution.

In March 2022, an outside actor accessed, encrypted, and held for ransom certain files and servers maintained by Comstar. In May 2022, Comstar began mailing data breach notices to consumers on behalf of the various entities for which it conducts billing.

The consent judgement, filed in Suffolk Superior Court on January 28, 2026 and which is awaiting court approval, resolves allegations that Comstar violated the Massachusetts Data Security regulations and the Health Insurance Portability and Accountability Act (HIPAA) by failing to maintain an adequate Written Information Security Program (WISP) to prevent the initial attack. When implemented, WISPs help to identify and assess reasonably foreseeable risks and evaluate and improve the effectiveness of existing safeguards, including proper employee training and compliance.

In addition to the $415,000 monetary payment to Massachusetts and a separate payment to Connecticut, Comstar will be required to implement phishing protection software, a vulnerability management program, multi-factor authentication, an asset inventory, an intrusion detection/prevention system, a security incident and event management platform, and security software for laptops and desktops on Comstar’s network. In addition, Comstar will also be required to conduct a security assessment once per year for three years and transmit the findings of those reports to the Massachusetts and Connecticut AGOs.

This matter is being handled by Assistant Attorney General Kaitlyn Karpenko and Chief Jared Rinehimer of the AGO’s Privacy and Responsible Technology Division. More information about the Massachusetts Data Security Law can be found here.

Media Contact

Kennedy Sims, Deputy Press Secretary

+

Phone

Call Kennedy Sims, Deputy Press Secretary at (617) 727-2543

Online

Email Kennedy Sims, Deputy Press Secretary at Kennedy.Sims@mass.gov


Office of the Attorney General

The Attorney General is the chief lawyer and law enforcement officer of the Commonwealth of Massachusetts.


Media Contact

Kennedy Sims, Deputy Press Secretary

Phone

Call Kennedy Sims, Deputy Press Secretary at (617) 727-2543

Online

Email Kennedy Sims, Deputy Press Secretary at Kennedy.Sims@mass.gov


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Source

Analysis generated by AI. Source diff and links are from the original.

Classification

Agency
State Attorneys General (10 States)
Filed
January 28th, 2026
Instrument
Enforcement
Legal weight
Binding
Stage
Final
Change scope
Substantive

Who this affects

Applies to
Healthcare providers Insurers
Geographic scope
National (US)

Taxonomy

Primary area
Data Privacy
Operational domain
Compliance
Topics
Healthcare Consumer Protection

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